Economy & Business, Volume 12, 2018

Abstract: The financing of enterprises, especially small and medium-sized enterprises, is one of the most popular issues today. The crisis of 2008 drew the attention even more to the financing anomalies of the SMEs. Credits are major sources of funding for modern economies, without them many companies can’t be able to function and develop. Credits are particularly important for financing investments, especially for small and medium-sized enterprises. This financial source is the most important external source for many SMEs, because these companies can’t be able to take another financial sources (e.g. crowdfunding, bond financing, venture capital, etc.). About credit financing there are very different opinions, some are opposed to taking it, but some say that loan money helps businesses if they are reasonably involved. Among the credits, long-term investment and development credits can be used at less risk than short-term variants, because they are able to extract their payback basis. One of the reasons for the 2008 crisis was that companies became irresponsible in borrowing, and banks supported this through their unlimited credit supply. However, the mass spread of markets and credits drew attention to the dangers of irrelevant lending learned by both the supply and demand side. The aim of the study is to show the optimal size of loans taken up by Hungarian small and medium-sized enterprises. The analysis intends to show business opinions about the value of the credits for different purposes in order to draw attention to the optimum lending volume from both creditors and borrowers alike.